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Tag Archives: government pensions

Growing Government Insolvency


Government Pigs Squeezed by Reality [courtesy Google Images]

Government Pigs Squeezed by Reality
[courtesy Google Images]

The Washington Times reports (“Dennis Ross pushes zero-based budgeting for federal government”) that Congress may impose much stricter financial controls on government agencies and bureaucracies.

According to said Congressman Dennis A. Ross, Florida Republican and a member of the House Committee on Financial Services,

 

“The streamlining tactic, known as zero-based budgeting, requires each agency or business unit to justify their budget requests from scratch for all existing and newly requested programs. It’s something the federal government hasn’t attempted since Democratic President Jimmy Carter advocated for it in the 1970s; it relies instead on past budgets as a baseline of money that’s guaranteed, and then requests additional sums year-over-year.

 “‘We should be painfully honest with the American people, because it’s their money.  When we do the budget process, we want to have some justification for every appropriation that is sought—a legal basis for it, an amount that is less than last year’s and a summary to express the outcome of it.”

 

Oh, pulleese—as if government could ever be “painfully honest” with the American people about anything.  (If government started being “painfully honest,” half of Congress would wind up “painfully” in prison.)

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Looting for Dollars


Possible Remedy for Government Looting [courtesy Google Images]

Possible Remedy for Government Looting
[courtesy Google Images]

A Russian analyst named Dmitry Kalinichenko recently penned a brilliant article entitled “Grandmaster Putin’s Golden Trap”.  The original article was written in Russian and subsequently translated into English.  Some of the translation’s language is a little rough, but it all makes sense.

Part of his article discussed the significance of a recent announcement by China:

 

“China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. . . . [W]hen this statement translated from financial language, it reads: ‘China stops selling their goods for dollars.’

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What Can’t Be Paid, Won’t Be Paid—Not Even to Government Pension Funds


Is Nothing Sacred?  Not Even Gov-co Pensions?! [courtesy Google Images]

Is Nothing Sacred? Not Even Gov-co Pensions?!
[courtesy Google Images]

According to The New York Times article “In Ruling on California Town’s Bankruptcy, Judge Challenges Security of Pensions”:

 

 “A federal bankruptcy judge on Wednesday upended the widely held belief that public workers’ pensions have a special status in California that makes them impossible to cut, further chipping away at the idea that pensions are sacrosanct in a municipal bankruptcy.”

 

The judge ruled against the sanctity of CalPERS pensions and declared the CalPERS liens on the city of Stockton, California to be null and void.

What’s that mean?

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Posted by on October 16, 2014 in Bankruptcy, Pensions, What Can't be Paid

 

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Pension Panic


City of Detroit

Mel Brooks' Blazing Saddles:  "One more step . . . and the nigger gets it!"

Mel Brooks’ Blazing Saddles: “One more step . . . and the nigger gets it!”

On July 18, Detroit’s $18.5 billion bankruptcy became the largest U.S. bankruptcy ever. (OK, maybe not “ever”–but at least, “so far”.)

The Detroit Free Press (“Detroit: Snapshot of a City in Trouble”) described the bankruptcy as marred by “legal wrangling . . . that will involve more than 100,000 creditors, which include the Police and Fire Retirement System and the General Retirement System and its 20,000 retirees.”

Detroit’s emergency financial manager Kenneth Orr offered government retirees some temporary relief, promising:

“We have made a decision that for the balance of this year, the next six months, we’re not touching pension or health care.  So all pensioners, all employees you should understand: It’s status quo for the next six months.”

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